Indian economy during reforms - class-XII
Coverage of India's LPG (Liberalization, Privatization, Globalization) economic reforms, including FDI policy, disinvestment, foreign investment impacts, and sector-specific changes during the reform period.
Questions
Select the correct statement/statements using the code given below:
1. Industrial lockouts caused by the striking contractual labour has increased during the last $5$ years, which indicates immediate need of labour reforms in India pending since long.
2. Increasing labour unrest in India is emerging as the main determinant in attracting FDI.
- Only I
- Only 2
- I and 2
- Neither 1 nor 2
Regional disparity in per capita income in India has increased in the post reform period due to many factors. Which among the following factors has not contributed to the growth in such disparity?
- Decline in the share of public investment.
- Change in policy regime regulating investment locations.
- Poor governance and poor infrastructure.
- Allocation of central government funds through the award of finance commission.
Growth in GDP during reform period was mainly driven by growth in _______.
- service sector
- agriculture sector
- industrial sector
- both A and C
As a result of foreign investment _____________.
- India has seen a tremendous rise in new technology
- India is the fifth largest foreign exchange reserve holder in the world
- rising prices could not be kept under control
- all of the above
Foreign investment includes ________.
- FDI
- FII
- both A and B
- none of the above
Developing countries don't have access to developed countries market because _______.
- high non-tariff barriers like quota restriction
- inability to produce
- lack of labour
- none of the above
Which of the following is true regarding disinvestment?
- Assets of PSUs were sold at correct value
- Proceeds from disinvestment were used to build social infrastructure
- Proceeds from disinvestment were used to offset the shortage of government revenues
- There was a substantial loss to the government due to disinvestment
Which of the following led to decline in industrial growth?
- Decreasing demand of domestic products
- Domestic manufacturers were facing competition from imports
- Inadequate investment in infrastructure
- All of the above
At present, India is the _______ largest foreign exchange reserve holder in the world.
- fifth
- sixth
- seventh
- eighth
Which of the following led to the Sircilla tragedy?
- Hike in prices of cloth
- Hike in power tariff
- Both A and B
- Insufficient labour
Which of the following is true regarding the LPG reforms?
- Sufficient employment opportunities were generated
- Industrial sector recorded growth
- Growth rate of agriculture sector decelerated
- It had a positive impact on developmental and welfare expenditures.
Hike in power tariff during reform period led to 50 powerloom workers committing suicide in a small town called _____ in ______.
- Sircilla, Andhra Pradesh
- Sircilla, Uttar Pradesh
- Sircilla, Telangana
- None of the above
How did disinvestment cause loss to the government?
- Proceeds from disinvestment were used to offset the shortage of government revenues
- Proceeds from disinvestment were not used to development of PSUs and building social infrastructure
- Assets of PSUs were undervalued and sold to the private sector
- All of the above
State whether the following statement is True or False.
Purchasing power of the Indians is increasing.
- True
- False
State whether the following statements are True or False.
India has emerged as one the leading countries of the world.
- True
- False
In India disinvestment process started in ________.
- 1991-92
- 1990-92
- 1996-97
- 2000-01
FDI in Hotels and Tourism sector is allowed up to _______.
- 26%
- 49%
- 74%
- 100%
FDI in Insurance sector is allowed upto ______.
- 26%
- 49%
- 74%
- 100%
FDI in Private Security Agencies is allowed up to _______.
- 26%
- 49%
- 74%
- 100%
FDI in credit information companies is allowed up to minimum of ______.
- 46%
- 49%
- 74%
- 100%
FDI in power trading sector is allowed up to ________.
- 26%
- 49%
- 74%
- 100%
FDI in Civil Aviation Greenfield projects is allowed upto ________.
- 26%
- 100%
- 74%
- 51%
FDI in Civil Aviation schedule Airport services / Domestic schedule passenger sector is allowed upto ______.
- 49%
- 100%
- 74%
- 24%
FDI in defense sector is allowed upto _______.
- 100%
- not allowed
- 49%
- 74%
FDI in Non-Banking Finance Companies is allowed up to ________.
- 26%
- 49%
- 74%
- 100%
FDI in Civil Aviation Non-schedule Air Transport Service is allowed upto ______.
- 74%
- 46%
- 100%
- 24%
FDI in private sector banking sector is allowed up to _______,
- 26%
- 49%
- 74%
- 100%
FDI in Postal service sector is allowed up to _______.
- 26%
- 49%
- 74%
- 100%
FDI in Telecommunication sector is allowed up to _______.
- 26%
- 49%
- 74%
- 100%
FDI in Civil Aviation existing project is allowed upto _______.
- 24%
- 44%
- 76%
- 100%
FDI in public sector banking sector is allowed up to ______.
- 20%
- 49%
- 74%
- 100%
FDI in Civil Aviation Helicopter Service is allowed upto ______.
- 100%
- 74%
- 24%
- 49%
FDI in Multi Brand Retail Trading is allowed upto ______.
- 20%
- 100%
- 51%
- 49%
FDI in Telecom Services is allowed upto ______.
- 100%
- 29%
- 74%
- 51%
Foreign capital is needed to ________.
- tide over balance of payment crisis
- supplement domestic savings
- create economic infrastructure
- all of the above
FDI in E-Commerce activities is allowed upto ______.
- 46%
- 51%
- 100%
- 44%
FDI in which of these sectors is not permitted ________.
- lottery
- chitfund
- gambling
- all of the above
FDI is not permitted _______.
- atomic energy
- rail transport
- nidhi companies
- all of the above
FDI is not allowed _______.
- real estate development
- betting
- casinos
- all of the above
Disinvestment means selling of _______________________.
- Public Investment to a Private Entrepreneur
- Private Investment to a Public Sector Unit
- Either (a) or (b)
- Neither (a) nor (b)
Encouragement of Foreign Direct Investment & removal of Quantitative Restrictions are both parts of ___________________.
- Industrial Reforms in India
- External Sector Reforms in India
- Land Reforms in India
- Banking Reforms in India
Inspite of the Economic Reforms already carried out in India, there is a further need for ___________________.
- Better industrial deregulation
- Improvement in Fiscal Discipline
- Increase in growth of Infrastructure
- All of the above
The Economic Reforms in India have failed to -
- Keep fiscal deficits to the targeted levels
- Fully implement industrial deregulation
- Fully open the economy to trade
- All of the above